Saab 2013 Annual Report Download - page 115

Free Cash shall however never amount to less than the lowest of:
  per cent of sales (total sales)
  per cent of outstanding on-demand guarantees for the three
largest commitments
Liquidity and nancing risks are minimised by diversifying nancing sources
and maturities.
Saab’s policy is to insure on-demand guarantees for major projects against
unauthorised use. is applies to contracts where the counterparty is classi-
ed as a developing country according to the denition of the Export Credits
Guarantee Board (). Insurance can be obtained from state guarantee
institutions or the private insurance market.
Saab has access to the following credit facilities:
Loan facilities
MSEK Facility Utilised Available
Club loan (matures 2016) 4,000 - 4,000
Total confirmed credit facilities 4,000 - 4,000
Commercial paper 5,000 - 5,000
Medium Term Notes (MTN) 3,000 1,000 2,000
Receivables financing 1,475 555 920
Total loan programmes 9,475 1,555 7,920
Total loan facilities 13,475 1,555 11,920
e club loan is a credit facility with an equivalent value of  , evenly
divided between eight banks and maturing in . No nancial covenants
are attached to the club loan or the other credit facilities.
A commercial paper programme with a limit of  , is available as
well. Neither the commercial paper programme nor the club loan was utilised
in .
In , Saab established a Medium Term Note () programme with a
limit of  , or an equivalent value in . e  programme pro-
vides access to nancing for up to  years, which is an element in diversifying
loan maturities.
During   , out of maturing  , was renanced.
Net liquidity
Net liquidity excluding interest-bearing receivables and provisions for pen-
sions amounted to  , (,) on  December . Liquidity varied
during the year, and liquidity was placed as per the Group Treasury Policy. At
year-end, placements in interest-bearing securities and bank deposits
amounted to  , (,).
Net liquidity
MSEK Note 31-12-2013 31-12-2012
Assets
Liquid assets 31 1,764 1,616
Short-term investments 25 2,002 3,963
Total liquid investments 3,766 5,579
Short-term interest-bearing receivables 27 121 326
Long-term interest-bearing receivables 27 83 109
Long-term receivables attributable to pensions 27 36 -
Long-term interest-bearing financial investments 25 141 144
Total interest-bearing assets 4,147 6,158
MSEK Note 31-12-2013 31-12-2012
Liabilities
Short-term interest-bearing liabilities 35 614 1,637
Long-term interest-bearing liabilities 35 1,095 105
Provisions for pensions 37 1,425 2,420
Total interest-bearing liabilities 3,134 4,162
Net liquidity 1,013 1,996
As of  December , net liquidity amounted to  , (,) with an
average during the year of  , (,). e net of interest income
received and interest expenses paid amounted to  - (). Of the liquid
investments of  , (,),   () was pledged as trading secu-
rity to . e sensitivity analysis below shows the eect on income of an
increase in market interest rates and in the credit margin of  percentage
point for Saab’s investments.
Placements in interest-bearing securities and bank deposits
Sensitivity analysis of financial risk
MSEK
Maturities
Fixed
interest 1)
Effect of
market in-
terest rate,
1%
Tied-up
capital
Effect of
credit
spread,
1%
Effect on
financial
costs
1 year 2,328 23.3 1,761 17.6 40.9
2 years 150 1.5 225 2.3 3.8
3 years 320 3.2 595 6.0 9.2
4 years 233 2.3 450 4.5 6.8
5 years and forward - - - - -
Total 3,031 30.3 3,031 30.4 60.7
Adjustment 2) 84
Total 3,115
1) Effects of derivative agreements entered are included in the fixed interest.
2) Adjustment of nominal value compared to book value due to market valuation at a premium or discount.
Current interest-bearing liabilities amount to   (,). Long-term
interest-bearing liabilities amount to  , () and mainly consist of a
renanced  programme of  , which was reported as a short-
term interest-bearing liability in . Of the long-term interest-bearing lia-
bilities,  , () matures within -years and   () in more
than  years.
e maturity structure of liabilities to credit institutions is indicated in
the tied-up capital column of the “Sensitivity analysis of nancial risk” table.
e volume of tied-up capital includes interest rate swaps. For the interest
rate swaps that refers to adjustment of the xed interest for the nancing,
hedge accounting is applied. No ineciency has aected the net income for
the year. e sensitivity analysis below shows the eect on income of an
increase in market interest rates and in the credit margin of  percentage
point for Saab’s renancing of credits.
Financing (refers to utilised credit facilities)
Sensitivity analysis of financial risk
MSEK
Maturities
Fixed
interest 1)
Effect of
market in-
terest rate,
1%
Tied-up
capital
Effect of
credit
spread,
1%
Effect on
financial
costs
1 year 555 5.5 555 5.5 11.0
2 years - - - - -
3 years - - - - -
4 years - - - - -
5 years and forward 1,000 10.0 1,000 10.0 20.0
Total 1,555 15.5 1,555 15.5 31.0
1) In the fixed interest effects of derivative agreements entered are included.
NOTE 41, CONT.
FINANCIAL INFORMATION > NOTES
SAAB ANNUAL REPORT 2013 111